What does the increasing national debt mean for us?

[Molly]

I'm not an economist and don't understand what the national debt means for us, but I have a feeling it is not good. How high can it go before there is a collapse? What does it mean for us?

I know from personal experience what it means to get over your head in debt. That happened many years ago and is how I discovered this forum. I worry a lot about what the national debt will mean in the future. Sure the stock market is booming now, but the current administration appears to be kicking the can down the road.

Nobody wants to hear frugality from a president. Looks what happened to Jimmy Carter (bless his heart) when he told us to turn down the thermostat and wear a sweater.

Thoughts?

[ApatheticNoMore]

Maybe there's never really going to be collapse from that. From environmental problems yes but not that. Maybe there would be an economic collapse if we STOPPED issuing debt. It may not be for good reasons that this is so, the U.S. has raw power afterall and wields it, but ... Maybe if not some other country would have to issue the world's debt.

I don't understand all the economics, but it's seldom economists who are worried about it, it's politicians, most of which have their own agenda having nothing to do with concern about the debt.

[ToomuchStuff]

It means we are spending more then we take in on taxes, while kicking the can down the line.

https://en.wikipedia.org/wiki/United...s_debt_ceiling
https://en.wikipedia.org/wiki/United...federal_budget
https://www.thebalance.com/u-s-debt-...crises-3305868

The only way to eliminate it, is STOP ALL FEDERAL SPENDING. This means no defense, no entitlements (or the people that cut the checks to them), no federal money for infrastructure, no money to help "disaster area's", etc. etc.

As to the limit, the fear is what happens when we reach 100% of our GDP, instead of the nearly 80% we are about now.

[bae]

What form does the "debt" take?

What is "money"? Where does money come from?

[iris lilies]

I dont like it and try not to think about it.

[Yppej]

Ot wouldn't be so bad if we weren't picking a trade war with the country that owns so much of our debt.

[dado potato]

The 77th US Secretary of the Treasury is responsible for maintaining the payments on the national debt. I refer to Steven Mnuchin, former investment banker for Goldman Sachs and former hedge fund manager. He graduated from Yale. In 2017 at the age of 56, he married Louise Linton, a "Scottish actress", who is about 20 years younger. In an interview she said that she Ubers everywhere... and that Steven bought her a lifelong sponsorship of an endangered rhinoceros. "So romantic."

I trust that in the Treasury Department Steven has underlings who really will be responsible, when I want eventually want to cash in my Treasury I Bonds.

[Gardnr]

When I took Macroeconomics back in 1988, my professor said it doesn't matter. I remember how surprised we all were. I no longer recall all of the details of her why.

[Alan]

When I took Macroeconomics back in 1988, my professor said it doesn't matter. I remember how surprised we all were. I no longer recall all of the details of her why.

I think the theory is, as money is spent (even borrowed money) it goes into new pockets who then spend it again in markets where it is spent yet again, all the while creating value and driving economic growth.

I think that only works on a macroeconomic scale, I wouldn't suggest we try it ourselves.

[bae]

When I took Macroeconomics back in 1988, my professor said it doesn't matter. I remember how surprised we all were. I no longer recall all of the details of her why.

That's what Alan Blinder told me in Macro in 1983 as well. And he wrote the book.